The price of gold rose to touch $1,250 per ounce for the first time in seven sessions Tuesday morning, as major government bonds also rose after comments from U.S. Fed officials on the odds of reducing their monetary stimulus at next week's policy meeting.

You need to find the quality management teams with money in the treasury, the ability to raise more and having the advanced projects that are well along the development path towards a mine that is going to be a long life, lowest quartile all-in cost producer.

Investors seeking leverage to precious metals should focus on junior resource companies who own the world’s undeveloped gold and silver deposits as they provide the best exposure to a rising precious metals price environment.

The upside to gold stocks is that investors historically have received a 2-to-1 leverage by owning gold equities instead of the commodity. We believe that effective management can help miners gain more leverage over the metal for their shareholders.

The head of Aheadoftheherd.com isn't looking for huge producers with so much overhead that they can't profitably mine an ounce of gold. Instead, Mills seeks out the smaller mines with low capital costs. That's where the money will be made in the next two years, he says.